Q245
Coupon payment accrued between last payment and settlement date is classified as
A.
paid interest
B.
unpaid interest
C.
zero interest
D.
accrued interest
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Coupon payment accrued between last payment and settlement date is classified as accrued interest. An accrual bond is a bond that does not pay periodic interest payments.